Wuhan Steel, China's third largest steel mill, has signed a memorandum of understanding with the Guangxi Liuzhou Iron & Steel Group to build a 10m ton greenfield steel plant in southern China's Guangxi Zhuang Autonomous Region that could cost up to US$6bn, state media reported. There are currently no dominant steel producers in southern China, where per capita steel consumption is well below that of other wealthy regions in China.